Welcome to Automated Trading Strategies
Our highest performing strategy made over $270K last year.
Our goal is to find the holy grail of automated trading strategies.
We are not financial engineers. We are not coders. We are not mathematicians and none of us are good at computational finance, but we are all on a quest to find the holy grail of automated trade strategy. You can read more about us here.
We’ve defined the holy grail of trade strategy to be the following (based on annual performance):
Profit factor greater than 3
Annual drawdown less than 3%
Annual return greater than 500%
Minimum daily net profit of -$1,000
Avg Daily profit greater than $1,000
Less than 5,000 trades annually
We have yet to find this elusive trade strategy, but we’re on the hunt!
If you subscribe to our newsletter, you’ll be among the first to find out when we do.
What is an automated trading strategy?
Automated trading (also referred to as algorithmic trading) is a trading strategy that makes automated trades based on a set of inputs or a program that you create. Traders like to use automated strategies to remove emotion from the decision making process.
Which automated trading strategy is the best and how do you know?
We've tested over 500 strategies. We compare each strategy based on the following attributes:
Strategy - The name of the strategy.
Trades - The number of trades used in the backtest to analyze performance. Our goal is ~1,000 trades for comparison.
Start date- The beginning date of the backtest.
End date - The ending date of the backtest.
# of days - The number of days in the strategy.
Drawdown - This refers to the maximum drawdown statistic, which provides you with information regarding the biggest decrease (drawdown) in account size experienced by the strategy. Drawdown is often used as an indicator of risk.
Drawdown = single largest Drawdown
As an example, your account rises from $25,000 to $50,000. It then subsequently drops to $40,000 but rises again to $60,000. The drawdown in this case would be $10,000 or -20%. Take note that drawdown does not necessarily have to correspond with a loss in your original account principal.
Return on Max Drawdown - We’ve added a dollar value for max drawdown along with a measure of return (return on max drawdown), which is calculated by dividing net profit by the max drawdown. In this way, max drawdown is considered the max capital investment. You can use the dollar value of max drawdown as a proxy for how much capital you need to trade the strategy. And, the higher the return on max drawdown, the better the strategy is in terms of risk/reward.
Percent Profitable - This is a metric that shows the number of winning trades divided by the number total trades.
Profit - The net profit made on the strategy for the backtest.
#trades per day - The average number of trades made per day using the strategy.
Profit / Day - The average profit made per day.
Profit / Trade - The average profit made per trade.
Lowest daily new profit - The worst performing day of the strategy in the backtest.
Highest daily net profit - The best performing day of the strategy in the backtest.
Profit Factor - Gross Profit divided by Gross Loss
At the end of the day, we’re looking for the holy grail as defined above, and every strategy is getting us closer to that goal.
A paid subscription gives you the opportunity to copy our best strategies and try them out for yourself. Our highest performing strategy made over $270K last year (and that’s on just one NASDAQ futures contract). You’ll also be the first to receive strategy performance updates as well as our best new strategies added to the list.
Each strategy provides a detailed description of how to duplicate the automated strategy as well as a download available in Ninjatrader (C#).
For an updated list of all strategies click here.